Calculate the total expected returns for the following options:

Option 1

Borrow $9,000 today at 6% interest and $3,000 in equity

40% chance of receiving $10,200 in 1 year

60% chance of receiving $26,700 in 1 year

Option 2

Issue stock today for $27,000 and the rest borrowed at 6% interest at $3,000

40% chance of receiving $10,200 in 1 year

60% chance of receiving $26,700 in 1 year

Option 3

Issue $12,000 stock today

40% chance of receiving $10,200 in 1 year

60% chance of receiving $26,700 in 1 year